Landlords could be hit by changes to negative gearing

3,020 landlords in the Devonport and Burnie-Wynyard areas could be hit if changes are made to negative gearing.

“3,020 people own an investment property in the Devonport and Burnie-Wynyard areas, including 1,820 who use negative gearing”, said Brian Wightman, Tasmanian Executive Director of the Property Council of Australia.

“Most people who buy and investment property are mums and dads who are trying to do the right thing and not be a burden on taxpayers.

“Across Australia, there are 840,000 people who negative gear and have incomes below $80,000 a year.

“These aren’t rich people but they are using property to secure their financial future.

“We don’t want investment properties to end up like superannuation where successive governments chop and change the rules all the time.

“Australia’s economy is going through a transition and changes to negative gearing will impact jobs and investment.

Mr Wightman said this investment was underpinning the property sector investment and jobs in the region.

“Property is a vital part of the economy. The construction of a typical house includes the use of 40 trades and sub trades – and the region can’t thumb its nose to property investment.

“If construction takes a hit then jobs will be lost and renters will be squeezed.

“During a time when the economic outlook is uncertain, the government shouldn’t play with a sector that is vital to the economy.

Mr Wightman said it was important for property investors to let their local Federal MP or Senator know that we shouldn’t risk such an important part of our economy.